Hartford Business Journal

HBJ022425UF

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HARTFORDBUSINESS.COM | FEBRUARY 24, 2025 25 Unlocking Connecticut's Business Growth Potential: Insights from the 2025 Business Leaders Outlook Survey A s we step into 2025, a wave of optimism is sweeping across the business land- scape, particularly among small and midsize enterprises. The recently released 2025 Business Leaders Outlook survey by JPMor- ganChase reveals a renewed sense of confidence among business leaders, setting the stage for a year of growth and opportunity. This sentiment is echoed across Connecticut, where local busi- nesses are poised for growth and expansion and well-suited to nav- igate challenges with resilience and innovation. A Surge in Optimism The survey highlights a signifi- cant uptick in confidence among business leaders. Nationally, confi- dence in the economy has surged, with 65% of midsize business leaders expressing optimism—a remarkable, two-fold increase from the previous year. The survey demonstrates that leaders anticipate a robust economic en- vironment that supports business development and opportunity. Connecticut's Business Landscape Connecticut, known for its diverse economy and strategic location, is home to a vibrant community of small and midsize businesses. These enterprises are integral to the state's economic fabric, contributing to job creation and innovation across sectors, partic- ularly aerospace and defense and advanced manufacturing. In the survey, nearly three-quarters of midsize businesses nationally ex- pect revenue growth in 2025, and 65% anticipate higher profits. Fur- thermore, this optimism appears to be motivating many businesses to expand their workforce and launch new products and services. Navigating Challenges with Resilience While optimism abounds, chal- lenges remain. Inflation and labor constraints are top concerns for businesses nationwide. The sur- vey reveals that 46% of midsize businesses face significant chal- lenges related to labor shortag- es, retention, and recruitment. To address these issues, many are adopting innovative strat- egies such as offering flexible work arrangements and en- hancing employee benefits. Embracing Digital Transformation Digital transformation is another key focus for businesses aiming to stay competitive in today's fast- paced environment. Small business- es across the country are leading the charge, with 48% planning to integrate artificial intelligence (AI) applications into their operations. This investment in technology is expected to streamline processes, enhance customer experiences, and drive growth. Strategic Growth Initiatives Many businesses are also exploring strategic partnerships and market expansion to fuel growth. More than half of midsize businesses plan to launch new products and services, while 43% are considering strategic partnerships. Additional- ly, nearly half of these businesses are looking to expand into new geographical markets. Positioning for Sustainable Growth As businesses chart their course for 2025, sustainable growth remains a priority. Connecticut enterprises looking to channel optimism into action should focus on unlocking working capital, embracing digital transformation, and developing robust risk management strategies. "Business optimism is on the rise and midsize business leaders tell us they're confident about the nation- al economy for the year ahead. They're similarly upbeat about their own prospects, projecting increased annual revenue and planning for higher capital expenditures as they look to hire and expand. Our team is on the ground to help business leaders embrace opportunities, navigate challenges, and support them as they continue to grow and innovate," said Matt McSpedon, Managing Director and Market Ex- ecutive Middle Market Banking for Connecticut and western Massachu- setts, JPMorganChase. The 2025 Business Leaders Outlook survey paints a promising picture for small and midsize businesses. With a strong foundation of optimism and strategic planning, these enterpris- es are poised to thrive in the year ahead. As they embrace innovation and tackle challenges head-on, Connecticut's business community is set to play a pivotal role in driving economic growth and prosperity. For more insights and detailed findings, visit www.jpmorgan.com/ businessleadersoutlook2025. Buoyed by rising optimism, businesses are bullish when it comes to their companies' performance projections for 2025. Among small business respondents: • Two-thirds predict higher profits (67%) and sales (66%) • Half (51%) plan to increase spending The majority (64%) plan to invest more to support sales by adding products (35%), funding more advertising (34%) and in- creasing social media campaigns (31%), among other strategies SPONSORED CONTENT WWW.JPMORGAN.COM/BUSINESSLEADERSOUTLOOK2025

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